Finance News Update | 16 July 2026

General Headlines Godongwana hauled to parliament over R13bn municipal funding freeze Finance Minister Enoch Godongwana will face parliament’s Cogta committee on Friday to explain why Treasury froze R13.5 billion in funding for 69 municipalities, including Johannesburg and Nelson Mandela Bay. He used Section 216 of the Constitution to push municipalities to fix poor financial management, wasteful spending, and unfunded budgets. Treasury will only release the July funds once municipalities show plans to improve. The Financial and Fiscal Commission (FFC) criticized the freeze, saying parliament should decide on fund allocations through the Division of Revenue process. Cogta chair Zweli Mkhize has called a joint meeting with ministers, Salga, and oversight committees to address the issue. While some MPs oppose Treasury’s move, Mkhize insists municipalities must face consequences for irregularities. (MoneyWeb) Warning over the two-pot retirement system in South Africa The two-pot retirement system, introduced in 2024, has been running for two years. It splits retirement savings into two parts: a retirement pot, which must hold at least two-thirds of the money and can only be accessed at retirement, and a savings pot, which can be used earlier for emergencies.Thys van Zyl, CEO of Everest Advisory Services, warns that the danger lies in people treating their retirement savings like ordinary cash. The system was designed to help households facing short-term financial pressures while still protecting long-term retirement funds. However, every withdrawal from the savings pot reduces the chance for that money to grow through compound interest, which could weaken future retirement security. In essence, the system aims to balance immediate financial relief with long-term retirement planning, but the risk is that people may spend too much too soon. (BusinessTech)

Good news for Absa customers in South Africa Absa has become the fourth big bank in South Africa to offer Smart ID services in partnership with the Department of Home Affairs (DHA). Minister Leon Schreiber announced that Absa will now join Capitec, Standard Bank, and FNB in providing these services.Currently, Absa customers with active transactional accounts can apply for Smart ID cards at 12 branches, with plans to expand to 60 more by the end of the year. The DHA also revealed that Absa will launch a mobile service called Bank on the Move to bring secure Home Affairs services to more communities.From Monday, 20 July 2026, Smart ID services will be available at Absa branches in Rosebank Mall, Greenstone Mall, Tembisa Mall, Menlyn Park, Waterfall Mall, Claremont Cavendish Square, Cape Gate, Kimberley City Centre, Vincent Park in KuGompo City, Nelspruit Crossing, Mall of the North, and Pinetown.(BusinessTech)

Markets and Investments Iran-US skirmishes worsen as Hormuz shipping traffic dwindles The United States has carried out strikes on Iran for the fifth day in a row, targeting a sanctioned oil tanker near Iran’s main export hub. In response, Iran attacked American bases in Kuwait and Jordan, though Jordan said it intercepted eight missiles. Tensions remain high as President Donald Trump warns he will keep escalating until Iran reopens the Strait of Hormuz, a key global oil route. Iran insists the strait will stay closed unless ships follow its rules and pay fees. Iran’s parliamentary speaker, Mohammad Bagher Ghalibaf, said the country sees no reason to stick to the recent interim deal with the US, though he stopped short of formally withdrawing. Both sides accuse each other of breaking the agreement, which was meant to reopen the strait but left unclear timelines.(MoneyWeb)

Property and Real Estates  Edgars to open 50 new community stores across SA over the next two years Edgars, the 97-year-old retailer, is planning to open 50 new community-focused stores over the next two years, with the first ones launching in July and August. After three years of restructuring its store network to better match customer needs, the company has seen strong results, with smaller, right-sized stores performing better than expected. CEO Norman Drieselmann says they are treating Edgars like a start-up, focused entirely on customers. Alongside the main stores, Edgars Beauty has grown to 18 outlets and will expand further in the Boland, while July will also see the launch of Edgars Connect, a new standalone cellular store.Retailability, which owns Edgars, also runs Kelso, a women’s fashion brand that has just opened its fourth store after a successful pilot.Since starting its restructuring, Edgars has handed back over 100,000m² of retail space to landlords, showing its shift toward a leaner, more customer-driven model.(PropertyWheel)